Sunday 30 April 2017

ESIC Scheme for Promoting Registration of Employers and Employees (SPREE)

The Employees State Insurance Corporation (ESIC) has issued a circular No. V-12/11/1/2014-P & D dated 20 December 2016 to promote registration of establishments, factories and employees coverable under the ESI Act.
This is one time opportunity to the Employers to register themselves under the provisions of the ESI Act 1948, who have not yet registered.
The advantage of the Scheme to the Employers is that those Registered during the period will be treated as covered from the date of registration or as declared by them without attracting liability for the past period even if the Act was applicable retrospectively.

What is SPREE?

As per this circular, the ESI Corporation has come up with the SPREE (Scheme to Promote Registration of Employers/ Employees) initiative as one-time drive/ scheme to extend to the social security benefits to all eligible employees under the Act who have been kept out of ESI coverage.

Key features and benefits of SPREE
The salient features of the scheme are:
• Employers registering during the scheme’s period will be treated as being covered from the date of registration or as declared by them.
• The newly registered employees shall be treated as covered from the date of their registration.
• The SPREE drive will not have bearing on actions taken/ required under the ESI Act prior to 20 December 2016.

Consequences of non-adherence 

The SPREE drive encourages all employers/ employees to use this opportunity and ensure that all the units/ employees coverable under the ESI Act are registered by taking advantage of this one-time drive.
The provisions of the ESI Act makes it mandatory for the employers to register the factory or establishment within 15 days of the Act becoming applicable to the factory or establishment and also register their employees immediately. The principal employer is liable to pay the employee’s and employer’s contribution. Interest and damages are recoverable for non-payment of any dues in time. Failure to pay the contribution is punishable.

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